Strata Oil & Gas Inc. ("Strata") (OTCBB: SOIGF) has provided an update on its Cadotte Project in the Peace River region of Alberta, a world-class carbonate-hosted bitumen discovery.
"We are continuing to make excellent progress on our Cadotte Project as our technical team moves forward with its decision on extraction technology," said Manny Dhinsa, President of Strata. "Based on our preliminary feasibility study, we know the project is very attractive economically, with a discounted net-present value of $1.2 billion. We have based our analyses on Cyclic Steam Stimulation as the preferred recovery-method, because of the extensive and successful testing that has already been done to date. However we are in the process of assessing more advanced technology which may result in even more favorable metrics than we had originally expected."
Based on data from 57 wells, Strata's independently-generated economic evaluation placed a Most Likely potentially recoverable portion of the oil in-place at 517 MMSTB, based on an oil in-place estimate of 1.99 billion barrels.
"The magnitude of the Cadotte project is reinforced by the fact that our initial numbers are only based on about 50% of the total Cadotte lease area. Our attention in the coming months is not only to move towards further production testing, but also to dramatically expand our focus to include the rest of the Cadotte lease area," says Mr. Dhinsa.
Production for Strata's Cadotte Project is estimated to be a maximum of approximately 56,000 barrels per day during the main period of development. The production life is expected to exceed 20 years.
The Cadotte project is 100%-owned by Strata.
Strata Oil & Gas Inc. is a Canadian junior exploration company focused on carbonate-hosted bitumen deposits in the Peace River area of Alberta, Canada. Strata's current total land holdings consist of approximately 112,692 acres with 111,692 acres (approximately 165 sections) being located in the Peace River area.
Strata Oil & Gas is a trademark of Strata Oil & Gas Inc. This announcement contains forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, risks related to petroleum exploration, limited access to operating capital, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All statements made herein concerning the foregoing are qualified in their entirety by reference to the Pre-Feasibility Study which has been filed with the SEC. More information is included in Strata's filings with the Securities and Exchange Commission which may be accessed through the SEC's web site at www.sec.gov.